(Via Slashdot): We
won! The Spanish-American War is Over, according to this New
York Times article:
Bowing to changes in technology and pressure from taxpayers
and phone companies, the Treasury Department said yesterday that it would
scrap the 108-year-old federal excise tax on long-distance phone calls. The
move will bring consumers and businesses about $15 billion in refunds on
next year’s tax returns.[...]Originally a luxury tax to help pay for the Spanish-American War, the 3
percent surcharge was calculated based on the length of the call and the
distance of the connection. But as unlimited long-distance calling plans
became commonplace, and the tax was applied to a flat monthly fee, some
taxpayers argued that the tax no longer applied to them because the duration
and distance of a call were irrelevant.Though the tax will still be imposed on local phone service, the
government will reimburse three years’ worth of taxes on long-distance
calls, including any plans that combine local and long-distance calling.
Consumers, who pay about 40 percent of the taxes collected, typically pay
about $18 a year in excise taxes if they have a long-distance service and a
cellphone.They will be able to file for a refund on their 2006 federal income tax
returns.